Bhupinder1-Main Projectss - 11

CHAPTER -1 INTRODUCTI0N
1. 1
INDUSTRY PROFILE
Page 1
GLOBAL INSTITUE OF MANAGEMENT,AMRITSAR
1.1.1
INTRODUCTION TO INSURANCE
"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event." Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk, attached to individual. With the help of Insurance, large number of people exposed to a similar risk makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. Insurance is a tool by which fatalities of a small number are compensated out of funds collected from plenteous. Gradually as competition increased benefits given by industry to its customers increased by leaps and bounds. Insurance is a basic form of risk management which provides protection against possible loss to life or physical assets. Person who seeks protection against such loss is termed as insured, and company that promises to honor claim, in case such loss is actually incurred by insured, is termed as Insurer. In order to get insurance, insured is required to pay to insurance company a certain amount called premium. Premium is collected by insurance companies which acts as trustee to pool created through contributions made by persons seeking to protect themselves from common risk. Any loss to the insured in case of happening of an uncertain event is paid out of this pool.
Insurance business is divided into four classes:

GLOBAL INSTITUE OF MANAGEMENT,AMRITSAR Page 2
Life Insurance Fire Marine Miscellaneous Insurance.
Insurance provides
Protection to investor. Accumulation of savings. Channeling these savings into sectors needing huge long term investment.
1.1.2
LIFE INSURANCE:
Life insurance is a contract under which the insurer (Insurance Company) in Consideration of a premium paid undertakes to pay a fixed sum of money on the death of the insured or on the expiry of a specified period of time whichever is earlier. In case of life insurance, the payment for life insurance policy is certain. The Event insured against is sure to happen only the time of its happening is not known. So life insurance is known as Life Assurance,, The subject matter of insurance is life of human being. Life insurance provides risk coverage to the life of a person. On death of the person insurance offers protection against loss of income and compensate the titleholders of the policy.
1.1.3
ROLES OF THE LIFE INSURANCE:
Life insurance as an investment: - Insurance products yield more than any other
investment instruments and it also provides added incentives or bonus offered by insurance companies.
Life insurance as risk cover: - Insurance is all about risk cover and protection of life.
Insurance provides a unique sense of security that no other form of invest can provide.
Life insurance as tax planning: - Insurance serves as an excellent tax saving mechanism
too.
1.1.4
INSURANC CYCLE
Fig 1: Insurance cycle
Policy Renewal/Change Options/Application
The Insurance Cycle begins each year with the insurance offer. Actuarial documents are published annually by the Risk Management Agency (RMA). The actuarial documents list the plan of insurance, crop, type, variety, and practice that may be insured in a state and county, and show the amounts of insurance, available insurance options, levels of coverage, price elections, applicable premium rates, and subsidy amounts. The Special Provisions of Insurance list program calendar dates, and general and special statements which may further define, limit, or modify coverage.
Sales Closing/Cancellation/Termination Dates

Insurance applications must be completed and signed no later than the sales closing date specified in the crop actuarial documents. Applications signed after the crop sales closing date may be rejected by the insurance provider. Insurance coverage is continuous and can be cancelled by either the insurance provider or the policyholder for the following crop year by providing a written notice to the other party no later than the cancellation date specified in the crop policy. For a policyholder insured the previous crop year, any changes he or she wishes to make to the policy coverage must be made on or before the crop sales closing date. The policy will automatically renew for the subsequent crop year unless the policyholder cancels the policy in writing on or before the crop cancellation date. Insurance coverage may be terminated by the insurance provider for the following crop year for nonpayment of outstanding debt by providing a written notice to the policyholder no later than the termination date specified in the crop policy. The insurance provider may terminate coverage on a crop if no premium is earned for three consecutive years.
Acceptance
Upon receipt of a properly completed and timely submitted insurance application, the insurance provider will accept and process the application, unless the applicant is determined to be ineligible under the contract or Federal statute or regulation. The insurance provider will issue a summary of coverage and the appropriate policy documents to the applicant. After the application is accepted, the policyholder may not cancel the policy for the initial crop year.
Insurance Attaches
For annual crops, insurance attaches annually when planting begins on the insurance unit. The crop must be planted on or before the crops published final planting date unless late or prevented planting provisions apply. If prevented planting provisions apply, and the crop cannot be timely planted due to the causes specified in the crop provisions, such acreage may be eligible for a prevented planting payment.
Acreage Reports
The policyholder must annually report for each insured crop in the county the number of insurable and uninsurable acres planted or prevented from being planted if prevented planting is available for the crop, the date the acreage was planted, share in the crop, the acreage location, farming practices used, and types or varieties planted to the insurance provider on or before the applicable acreage reporting date specified in the crop actuarial documents. This report is used by the insurance provider to establish the amount of coverage and premium for the crop. Insurance providers may deny coverage if the acreage report is filed after the applicable crop acreage reporting date.
Summary of Coverage
The insurance provider will process a properly completed and timely filed acreage report, and issue to the policyholder a summary of coverage that specifies the insured crop, the insured acres and amount of insurance or guarantee for each insurance unit. The policyholder may make changes to the filed acreage report, if permitted by the insurance provider.
Premium Billing
The annual premium is earned and payable at the time insurance coverage begins. The insurance provider shall issue a premium billing based upon the information contained in the acreage report no earlier than the premium billing date specified in the crop actuarial documents. The premium billing will specify the amount of premium and any administrative fees that may be due. If the premium or administrative fees are not paid by the date specified in the actuarial documents or policy, the insurance provider may assess interest on the outstanding premium balance.
Notice of Damage or Loss

A written notice of damage or loss for each unit is to be filed by the policyholder within 72 hours of the policyholder's initial discovery of damage or loss but not later than 15 days after the calendar date for the end of the insurance period unless otherwise stated in the individual crop policy. The policyholder should refer to the individual crop provisions for additional requirements in the event of damage or loss. These notifications provide the opportunity for the insurance provider to inspect the crop and determine the extent of damage or potential production before the crop is harvested or otherwise disposed of.
Inspection
After the insurance provider receives the written notice of damage or loss, it will be processed and, if necessary, a loss adjuster will be sent to inspect the damaged crop and gather pertinent information concerning the damage. If the policyholder wishes to destroy or not harvest the crop, the loss adjuster will gather the appropriate information, conduct an appraisal to establish the crop's remaining value and complete any forms needed. If the crop has been harvested or will not be harvested by the end of the insurance period, and the policyholder wishes to file a claim for indemnity, the loss adjuster will gather the appropriate information and assist the policyholder in filing the claim for indemnity. It is the policyholder's responsibility to establish the time, location, cause, and amount of any loss.
Indemnity Claim
After the claim for indemnity is processed by the insurance provider, an indemnity check and a summary of indemnity payment will be issued showing any deductions to the amount of indemnity for outstanding premium, interest, or administrative fees.
Contract Change Date

Changes to the insurance program may be made by RMA from one year to the next. The insurance provider will notify the policyholder in writing of any changes to the policy, actuarial documents, or the Special Provisions of Insurance prior to the calendar date for contract changes specified in the crop policy. The policyholder will have the opportunity to review the changes and, if he/she desires, continue the insurance coverage for the following crop year, change the policy coverage, or cancel the insurance coverage. Any changes to the policy coverage that the policyholder makes must be made no later than the crop sales closing date. If the policyholder wishes to cancel the policy, a written notice must be submitted to the insurance provider on or before the crop cancellation date.
1.1.5 HISTORY OF THE INSURANCE SECTOR:
The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are given in the following table
Some of the important milestones in the life insurance business in India are:
YEAR 1912 1928 Milestones in the life insurance business in India The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non1938 1956 life insurance businesses Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
Table 1
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business are:

YEAR 1907 1957
Milestones in the general insurance business in India The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Table 2
1968 1972
1.1.6
INDIAN SCENARIO:
Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is on the hinge of an ever increasing growth curve. Indians have a tendency to invest in properties and gold followed by bank deposits. They selectively invest in shares also but the percentage is very small--4-5%. This in itself is an indicator that growth potential for the insurance sector is
immense. Its a business growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion. India is a vast market for life insurance that is directly proportional to the growth in premiums and an increase in life density. With the entry of private sector players backed by foreign expertise, Indian insurance market has become more vibrant. Competition in this market is increasing with companys continuous effort to lure the customers with new product offerings. However, the market share of private insurance companies remains very low -- in the 10-15% range. Even to this day, Life Insurance Corporation (LIC) of India dominates Indian insurance sector. The heavy hand of government still dominates the market, with price controls, limits on ownership, and other restraints. The upward growth trend started from 2000 was mainly due to economic policies adopted by the then Indian government. This year saw initiation of an era of economic liberalization and globalization in the Indian economy followed by several reforms and long-term policies that created a perfect roadmap for the success of Indian financial markets. On the basis of several macroeconomic factors like increase in literacy rate & per capita income, decrease in death rate and unemployment, better tax rebates, growing GDP etc., we estimate that the Indian insurance sector will grow by $28.65 billion and reach $76.54 billion by 2011 with a CAGR of 12.44% and a growth of 59.82%. The Indian life insurance market generated total revenues of $41.36 billion in 2007, thus representing a compound annual growth rate (CAGR) of 11.84% for the period spanning 20002007. Life insurance market had a growth of $22.46 billion within a period of 7 years with a growth rate of 118.24%. Estimated life premiums rose from INR1, 470,800 million ($36.77 billion) in 2006 to INR1, 301,540 million ($32.54billion) in 2005. We envisage that life premiums in 2011 will be $65.96 billion, a growth larger than they were in 2007. The performance of the market is forecast to accelerate, with an anticipated CAGR of 9.78% for the four-year period 2007-2011 expected to drive the market to a value of $65.96 billion by the end of 2011. There would be a growth of $24.6 billion i.e. 59.48% in the next 4 years. Non-life premiums in India were $6.53 billion in 2007. Gross written premium (GWP) in the Indian non-life insurance market reached a value of $5.75 billion in 2006, this representing an
annual growth of 13.55% for the period spanning 2006-2007. Estimated non-life premiums rose from INR230 billion ($5.75 billion) in 2006 to INR261 billion ($6.53 billion) in 2007. We anticipate that non-life premiums will grow by a CAGR of 9.40% between 2007- 2011. We are looking for non-life premiums to rise by $405 million over the five years to the end of 2011 with a growth rate of 62.02%
Fig 2
The general insurance industry grew by 16% in 2006-07 as private insurers continued their robust performance, while public sector players like New India Assurance and Oriental Insurance improved their show. Despite continuous fall in business of government-owned National Insurance, the 12 non-life insurers collected Rs 20,378 crore in first year premium in the last fiscal compared to Rs 17,531 crore collected in 2005-06, according to data compiled by regulator IRDA. New India Assurance collected Rs 4,762 crore in premium and continued to lead the non-life sector by cornering 23.36% of the market. National Insurance was at the second spot by
collecting Rs 3,524 crore in premium, a decline of 7%, but had a market pie of 17.29%. Oriental Insurance mopped up Rs 3,518 crore in premium income after logging 16.6% growth in business to corner a market share of 17.26%. Another PSU insurer United India grew by a modest 6.8% to collect Rs 3,147 crore in premium and had 15.44% of the market. The eight private players expanded their business by 52% to collect Rs 5,427 crore in premium income and increased their combined market share to 26.6% from 20.2% a year ago. ICICI Lombard led the private players by logging 80% growth in premium at Rs 1,592 crore, followed by Bajaj Allianz, which grew by 50% to collect Rs 1,287 crore in premium. ICICI Lombard had a market share of 7.81% and Bajaj Allianz had 6.31% of the market.
1.1.7.
ROLE
OF
INSURANCE
REGULATORY
AND
DEVLOPMENT AUTHORITY ACT, 1999

An act to provide for the establishment of an authority to protect the interests of policyholders, to regulate, to promote and ensure orderly growth of the insurance industry and for matters connected therewith for incidental thereto and further to amend, the Life Insurance Corporation Act, 1956 and the insurance Act, 1938 and General Insurance Business Act 1972.
Spread Life Insurance much more widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in .the country and providing them adequate financial cover against death at a reasonable Cost. Maximize mobilization of people's savings by making insurance linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the; community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to: the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with ded1cat1on towards achievement of Corporate Objective.
1.1.8. NAME OF MAJOR INSURANCE COMPANIES IN AMRITSAR CITY

NAME OF INSURANCE COMPANIES Life Insurance corporation NATURE OF HOLDING Public
Tata AIG Insurance ICICI Prudential Max New York Life Insurance HDFC Standard Insurance Reliance Life Insurance Kotak Life Insurance Aviva Life Insurance SBI Life Insurance Bajaj Allianz Table 3
Private Private Private Private Private Private Private Private Private
Above all the company they are having various types of insurance plans. All the plans are giving a good rate of return after a certain period of time. But all the plans dont get success in the market. Many of the companies they are having almost same type of plan but sometimes it happens one of them is successful and another is not. Always it doesnt depend on the plan of the insurance sometimes it depends on the marketing strategies, promotion of the product, reputation of the company, employees of the company etc.
1.1.9.
MARKET SHARE OF DIFFERENT PRIVATE
PLAYERS:
Fig 3 If we see market share of different private players in the financial year 2009 then from the above chart we can understand ICICI Prudential is holding the maximum market share i.e. 21.6%. After that SBI Life and Bajaj Allianz is holding 14.8% and 13.2% respectively. Reliance Life Birla Sun life and HDFC Standard they are also holding a good market share all over the India. Tata AIG is holding 3.3% of market share all over the India
CHAPTER -2 INTRODUCTI ON TO COMPA NY
2. COMPANY PROFILE
2.1 THE TATA GROUP
Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over years that it is a value driven company and has pioneering contributions in various fields including insurance, aviation, iron and steel. In terms of capital market performance as many as 40 listed Tata companies account for nearly 5% of the total market capitalization of all listed companies. The Group has had a long association with India's insurance sector having been the largest insurance company in India prior to the nationalization of insurance.
2.2.
TATA GROUP IN INSURANCE
Tata AIG General Insurance Company Ltd, and Tata AIG Life Insurance Company Ltd., (collectively "Tata AIG") are joint venture companies between the Tata group India's most trusted industrial house and American International Group, Inc. (AIG), the leading U. S. based international insurance and financial services organization. The Late Sir Dorab Tata was the founder Chairman of New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government of India took over the management of this company as a part of nationalization of general insurance companies in 1972. Not deterred by the move, Tata group have ventured into risk management services having tied up with AIG group, back in 1977, with the incorporation of Tata AIG Risk Management Services Pvt. Ltd. The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2006-07 of $28.8 billion (Rs129,994 crore), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalization of $72.2 billion as on December 6, 2007. Tata
companies together employ some 289,500 people. The Tata Group has operations in more than 85 countries across six continents, and its companies export products and services to 80 countries.
2.3.
AMERICAN INTERNATIONAL GROUP (AIG)
American International Group, Inc. (AIG) is a major American insurance corporation based at the American International Building in New York City. The British headquarters are located on Fenchurch Street in London, continental Europe operations are based in La Dfense, Paris, and its Asian HQ is in Hong Kong. According to the 2008 Forbes Global 2000 list, AIG was the 18th-largest company in the world.
Company Background:
AIG's history dates back to 1919, when Cornelius Vander Starr established an insurance agency in Shanghai, China. Starr was the first Westerner in Shanghai to sell insurance to the Chinese. In 1962, Starr gave management of the company's less than successful U.S. holdings to Maurice R. \"Hank\" Greenberg, who shifted the company's U.S. focus from personal insurance to highmargin corporate coverage. The company went public in 1969. American International Group, Inc is the leading U.S. based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial and personal insurance products through a variety of distribution channels in over 130 countries and jurisdictions throughout the world. AIG's Life Insurance operations comprise of the most extensive worldwide network of any life insurer. AIG's global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products.
2.4. AIG:
THE JOINT VENTURE OF TATA GROUP AND
Tata AIG Life Insurance Co. Ltd. is capitalized at Rs. 185 crores of which 74 per cent has been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr. George Oommen has been named managing director of Tata AIG Life. Tata-AIG plans to provide broad array of life insurance plans to cover to both individuals and groups. The company headquartered in Mumbai, with branch operations in Delhi, Chennai, Hyderabad, Bangalore Calcutta, Pune and Chandigarh.
2.5. ABOUT TATA-AIG:

Tata AIG Insurance Solutions is one of the leading insurance companies that provide both life insurance as well as general insurance. This pioneer company is a joint collaboration between the American International Group, Inc. (AIG) and Tata Group. They own the company in the ratio of 26:74. It is a leading financial institution that has carved a niche for itself all over the world.Tata AIG Insurance provides facilities to both corporate and individuals. Starting its operations on April 1, 2001, it seeks to serve different categories of people. It acquired its license for carrying out operations in India on February 12, 2001. Tata AIG Insurance Solutions is one of the most prestigious organizations in the business world. It employs thousands of employees and offers various opportunities to people to build a prospective career. As a leading name in the financial world, it identifies the potential and experience of the individual. This insurance company identifies the clients. Needs and works accordingly. It stresses on innovative aspect and opening of new markets. It believes in new economy and latest Internet technology
Tata AIG Insurance offers a number of products for the General Insurance holders. General insurance products include: Individual insurance Small business insurance Corporate insurance Tata AIG Insurance offers flexible life insurance to the individuals, business organization and other association. For the corporate, there are various insurance products like group pensions, employee benefits, work place solutions and credit life. For the individuals, Tata AIG Insurance offers various products for adults, children and for retirement planning.
2.6.
Mission
MISSION, VISION AND VALUES
Explore and enhance the quality of life of people through financial security by providing product and services of aspired attributes with competitive return and by rendering resources for economical development.
Vision
'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. 'The most obvious choice for all'
Our Values
Values that we observe while we work
Integrity and Innovation
2.7.
KEY PLAYERS
Mr. Robert H. Benmosche is the Managing Director and CEO of the Company since August, 2009.Mr. Benmosche obtained a Bachelors Degree in Arts from Alfred University, New York.
2.8. RECENT ACHIEVEMENTS AND MILESTONES

TATA AIG life declare result financial year 2009-10:Mumbai: TATA AIG life, one of Indias leading private life insurance companies, declared its annual results for the financial year ending March 31, 2010.The company generated total premium income of Rs.3493.78crores in financial year 2009-10 registering a year on year growth of 27%.The growth was primarily driven by the companies structured sales processes based on customer needs and their assessments, wide range of products portfolio and diverse distribution network. Mr. Suresh Mahalingam, Executive Director, said The financial year 2009-10 was a defining year with the unfolding of several unexpected even sharp correction in financial markets and a spread of recessionary trends. These events also had an impact on the Indian life insurance industry. We are happy that our new policies issued grew by 16% over the last year. However, given the uncertainty in the overall scenario, customers have reduced their annual premium commitment on new policies. At the same time, existing policies continued to be in force reflected in our renewal premium, which posted a healthy growth of 27%.
2.9.
PERFORMANCE OF THE COMPANY IN THE
LAST FEW YEARS

Our gross premium income, for the year ending March 31, 2010 stood at Rs. 3,494 crores and new business premium income stood at Rs. 1,274 crores. Total premium income is up by 49.6% at Rs.2046.34 crores at against Rs.1367.18 crores in financial year 2007-08. Renewal premium collected increased to Rs, 2171.71 crores from Rs. 1604.80 crores in the previous year, registering a growth of 35%. A well balanced product portfolio with pension comprising over 40% children plans around 25% and the remaining constituting protection and savings plans, Company products and services are now available through a netwok of 135 offices serving over 28 states across the country. This is further complimented by corporate agency relationship with public, private and co- operative banks..
2.10. FUTURE PROSPECTS/PLANS OF THE COMPANY

Focuses in rural sector TATA AIG life also focuses on the rural sector of the India. To provide the benefits of the insurance they are also going to open the new offices in rural sectors. Providing an in- house training Towards improving the quality of the training imparted, the company started an in- house training facility to cater the mandatory training required to be given as well as for other sales training requirements. The company has received accreditation from the insurance regulatory and development authority (IRDA) for 149 training centers housed in its branches Web sites for the communication philosophy
TATA AIG life has revamped its corporate website (www.tata-aig-life.com) in line with its communication philosophy. The new improved, interactive, and user- friendly website is in sync with need- based communication strategy of helping individuals through their decision of selecting the right life insurance plans that fit their needs.
2.11. PRODUCT RANGE OF COMPANY

Individual Products We at TATA AIG Life realize that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family. Protection Plans You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan. Investment Plans Our Single Premium Whole of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses. Pension Plans Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus. Savings Plans Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your children immediate and future needs Our Savings range
includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Mahalife Gold, Invest Assure Gold , Invest Assure Gold Plus, Children's Plan
CHAPTER-3 REVIEW OF LITERAT URE

LITERATURE STUDY
Till today a lot of research has been done on the Indian insurance industry especially the life insurance sector. The material for this study was collected from various internet sites, journals and books by various authors. Similar research has been carried out by Sathak Mohanty who worked on the risk profile of ULIPs and analyzed insurance as an investment option. He says that Life Insurance Corporation of India (LIC) is still the undisputed leader in the Indian context. According to Anita Gupta-director, marketing and communication, ING Vysa Life insurance ULIPs are suitable for all types of customers, right from the lower class to the premium class. Also according to the Financial express (Dated 12th April, 2009) ULIPs are flexible to the core. During the course of the project some official studies on the products of Tata-AIG and IDBI FORTIS have been referred to. Also the books on Marketing Management by Philip Kotler and that of Marketing Research by Naresh Malhotra were referred to gain a deeper insight on positioning strategies and marketing research techniques. A lot of groundwork has also been done by studying the vast range insurance products before taking up this research.
CHAPTER -4 RESEARCH METHOLOGY
PURPOSE
The project is being done as a part of summer internship program of GLOBAL institute of management AMRITSAR. The completion of the project is a partial fulfillment requirement for being awarded the Masters in Business Administration (MBA) degree from the university.
SCOPE OF THE STUDY

This study aims to make a comparative study of the Unit Linked Insurance Plans (ULIPs) of TATA AIG Life Insurance Company with that of some major selected players in the Indian insurance market and study the consumer perception towards various insurance products. The comparative analysis is based on the empirical data collected from the Amritsar city.
OBJECTIVES OF THE PROJECT

To compare the Unit Linked Insurance Plans (ULIPs) of TATA AIG LIFE with that of some other selected companies. To identify the strengths and weaknesses of TATA AIG LIFE and suggest areas where it can focus more and improve upon. To study the consumer perception towards various insurance products. To study in detail the products range of brand TATA AIG LIFE in general.
METHODOLOGY
The techniques used for data collection are: A. Internet surveys and B. Questionnaire method The following methodology has been followed to achieve the objectives of the project:
Step: 1 Developing a right research design and timeline for the project. Step: 2 Collecting Secondary data of the insurance Industry Step: 3 Designing of the Questionnaire Step: 4 Analysis of secondary data Step: 5 Pilot Study Step: 6 Collection of primary data-Questionnaires and internet surveys Step: 7 Analysis of primary data Step: 8 Interpretation of the results Step: 9 Preparation of the final report
Table 4.1: Steps In Methodolgy
SOURCES OF DATA
In the data collection method, we have collected both primary and secondary data to meet our objectives
Primary Data The primary data was collected by a survey based on the questionnaire. It was formulated on the basis of information carefully gathered by me about the various mindsets of the people. This questionnaire was mainly formulated to target the common man to see his perception and awareness of various investment options available. The number of respondents targeted was around 150 and the survey was confined to Amritsar city. Secondary Data The secondary data was collected directly from the companies and their websites and internet surveys. Also a lot of similar research studies and journals have been referred to.
SAMPLING METHODOLOGY
Sampling Technique:
Initially, a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy of the Questionnaire. The final Questionnaire was arrived only after certain important changes were done. Thus my sampling came out to be judgmental and convenient
Sampling Unit:
The respondents who were asked to fill out questionnaires are the sampling units. These comprise of college students, house wives, and employees of MNCs, Govt. Employees and Self Employed etc.
Sample size:
The sample size was restricted to only 100, which comprised of mainly peoples from different areas of Amritsar city
Sampling Area:
The area of the research was Amritsar city
Methods adopted for surveys

1. Field survey method 2. Personal interview technique 3. Secondary sources viz company database The data collected are represented into suitable tabular forms for drawing inferences. Quantitative techniques like averages, percentages, and two-way tables are applied as per the requirement. The level of preference, perception of the customers about the product and company were identified by means of a scoring scheme. For the representation of data various charts and graphs are used as per requirement.
QUESTIONNAIRE DESIGNING:
The project is on ULIPS PLAN of Tata AIG . For this a questionnaire has been prepared. The questionnaire is having both open ended and close ended questions. It is also having ranking, multiple choice and check list type of questions. First part of the questionnaire is the demographic part. Questionnaire has been prepared in such a way that we can understand investment which are dependable on the occupation of a person or income level of a person.i.e. which type of investment do they prefer?
LIMITATIONS OF THE STUDY

The study is confined only to a small segment of the entire population due to monetary and time constraints and hence the results are applicable only to the Amritsar.
The scope of the project is limited to conceptual and marketing aspects of Life Insurance Companies and doesnt include Claim Settlement and the underwriting part of the operations which are equally important aspect of learning. It is not always possible to evaluate companies under similar parameters since many companies deal with various businesses thus clubbing all the companies on the same parameters is not always possible.
UNIT LINKED INSURANCEPLAN S
Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the benefits of protection and flexibility in investment. It is a solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as unit and is represented by the value that it has attained called as Net Asset Value (NAV). ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing a life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by the customer. Simply put, ULIPs are structured in such that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. ULIPs came into play in 1960s and became very popular in Western Europe and America. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers to the clients. As time progressed the plans were also successfully mapped along with life insurance needs to retirement planning .In todays times ULIP provides solution for all the needs of a client like insurance planning, financial needs, financial planning for childrens future and retirement Insurance) STRUCTURE OF ULIPs ULIPs offered by different insurers have varying charge structures. Broadly the different types of fees and charges are given below. However the insurers have the right to revise or cancel the fees and charges over a period of time ( Source: http://www.scribd.com/doc/7044410/ULIPs) Premium Allocation charges This is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge normally includes initial and renewal expenses apart from commission expenses.
planning.(
Source:http://www.scribd.com/doc/7216240/Understand-ULIP-
Mortality Charges These are charges to provide for the cost of insurance coverage under the plan. Mortality charges depend on number of factors such as age, amount of coverage, state of health etc. Fund Management Charges These are fees levied for management of the fund(s) and are deducted before arriving at the Net Asset Value (NAV). Policy/ Administration Charges These are the fees for administration of the plan and levied by cancellation of units. This could be flat throughout the policy term or vary at a pre-determined rate
Figure 4.1: Premium break -up under ULIPs
TYPES OF FUNDS UNDER ULIPs

Most insurers offer a wide range of funds to suit ones investment objectives, risk profile and time horizons. Different funds have different risk profiles. The potential for returns also varies from fund to fund. The following are some of the common types of funds available along with an indication of their risk characteristics. (Source: www.irdaindia.org) General description Nature of investments Risk category
Equity Funds Income, Fixed Interest and Bond Funds
Primarily invested in company stocks with the general aim of capital appreciation. Invested in corporate bonds, government securities and other fixed income instruments.
Medium- High
Medium
Cash Funds
Sometimes known as Money Market Funds invested in cash, bank deposits and money market instruments
Low
Balanced Funds
Combining equity investment with fixed interest instruments
Medium
Table 4.2 : Types of funds under ULIP
ADVANTAGES OF ULIPS
ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The plan is a one stop solution for everything the customers want. Unit Linked Insurance Plans (ULIPs) are different from traditional plans purely because, they are much more transparent, various charges are shared with the customer before the sale of the product, so as to enable the customer to make an informed decision. (Source:www.scribd.com/doc/7044410/ULIPs) Customers have the flexibility to choose their life cover. Also the customers have the choice of multiple fund options based on their risk appetite, thereby enabling an investor to make the desired returns from the investment. The following are some of the advantages of Unit linked plans: a. Life protection b. Investment and Savings Market linked fund based on risk profile Switch option Premium redirection Automatic Transfer Plan(ATP) c. Tax Planning d. Flexibility of cover continuance e. Transparency f. Extra protection with riders Death due to accident Disability Critical illness g. Liquidity Partial withdrawals during the term At maturity h. Variable investment options
FACTORS INFLUENCING THE BUYING OF UNIT LINKED INSURANCE PLAN (ULIPs)

The degree of buying of ULIPs insurance varies from person to person. It depends upon many factors. The factors can be classified into personal, social, economic, psychological and company related variables. Age and experience of policyholder are personal factors, while the coeducation is a social factor. Economic factors include occupation, income and wealth, and the psychological factors consist of perception, satisfaction about the services rendered by insurance companies, the impact of advertisement and personal selling made by insurance companies on policyholders. The company related variables are the promotional efforts to sell the policies to prospective buyers. These include advertisement and personal selling too.
ULIPs OF DIFFERENT COMPANIES
TATA AIG LIFE INSURANCE COMPANY
TATA AIG OFFERS FIVE DIFFERENT TYES OF ULIPs a. INVEST ASSURE CARE b. INVEST ASSURE FLEXI c. INVEST ASSURE II d. INVEST ASSURE EXTRA e .INVEST ASSURE GOLD Features of different plans offered by TATA AIG:
INVEST ASSURE CARE Min entry age 30 dys Max entry age 45 yrs Max Maturity age 6 5 Min premium 1200 0 No of funds 5 Riders ADBR,CIBR Min premium payment term NM
INVEST ASSURE FLEXI Min entry age 30 dys Max entry age 70 yrs Max Maturity age 8 0 Min premium 1500 0 No of funds 7 Riders ADBR,CIBR Min premium payment term NM
ADBR-Accidental Death Benefit Rider, CIBR-Critical Illness Benefit Rider, NM-Not Mentioned (Source: www.tata-aig-life.com)
Table 4.3 : features of different plans offered by TATA AIG
HDFC STANDARD LIFE INSURANCE COMPANY
HDFC STANDARD LIFE OFEERS NINE DIFFERENT TYPES OF ULIPs: a. Unit linked wealth maximiser plus b. Unit linked endowment plus II c. Unit linked endowment II d. Unit linked wealth multiplier e. Unit linked pension maximiser II f. Unit linked enhanced life protection II g. Unit linked young star II h. Unit linked young star plus II i. Unit linked pension II Features of different plans offered by HDFC STANDARD LIFE: ENDOWMENT PLUS II Min entry age 1 8 Max entry age 6 5 Max Maturity age 7 5 Min premium 1200 0 No of funds 7
ENHANCED LIFE PROTECTION II
Min entry age 1 8 Max entry age 4 5 Max Maturity age 7 5 Min premium 1200 0 No of funds 7
Riders ADBR,CIBR Min premium payment term TERM
Riders
NO
Min premium payment term TERM
TABLE 4.4: Features of different plans offered by HDFC STANDARD LIFE
BAJAJ ALLIANZ LIFE INSURANCE COMPANY
BAJAJ ALLAINZ OFFERS FIVE TYES OF ULIPs a. UNIT GAIN PLUS GOLD b. UNIT GAIN PREMIER c. CENTURY PLUS d. NEW UNIT GAIN PLUS e. PENSION GUARANTEE Features of different plans offered by BAJAJ ALLIANZ
UNIT GAIN PLUS GOLD Min entry age 0 yrs Max entry age 60 yrs Max Maturity age 70 yrs Min premium 1200 0 No of funds 6 Riders 6(after 18)
UNIT GAIN PREMIER Min entry age 0 yrs Max entry age 60 yrs Max Maturity age 70 yrs Min premium 5000 0 No of funds 3 Riders NM
Min premium payment term 3 yrs
Min premium payment term 3 yrs
TABLE 4.5: Features of different plans offered by BAJAJ ALLIANZ
LIFE INSURANCE CORPORTAION (LIC) OF INDIA
LIC OFFERS THREE DIFFERENT TYPES OF ULIPS a. MARKET PLUS b. PROFIT PLUS (RP & SP) c. FORTUNE PLUS Features of different plans offered by LIC
MARKET PLUS Min entry age 18 yrs
FORTUNE PLUS Min entry age 12 yrs
Max entry age 70 yrs Max Maturity age 75 yrs Min premium 5000 RP 10000 SP
Max entry age 60 yrs Max Maturity age 65 yrs Min premium 2000 0
No of funds 4 Riders ADBR Min premium payment term 5 yrs
No of funds 4 Riders ADBR Min premium payment term 5 yrs
TABLE 4.6: Features of different plans offered by LIC
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI PRUDENTIAL OFFERS FIVE DIFFERENT TYPES OF ULIPs a. LIFE TIME GOLD b. LIFE LINK SUPER c. PREMIER LIFE GOLD d. LIFE TIME PLUS e. LIFE STAGE Features of different plans offered by ICICI PRU LIFE INSURANCE:
LIFE TIME GOLD Min entry age 1 8 Max entry age 6 5 Max Maturity age 7 5
LIFE LINK SUPER Min entry age 1 8 Max entry age 6 5 Max Maturity age 7 0
Min premium 2000 0 No of funds 7 Riders ADBR,CIBR, WOP Min premium payment term 3 yrs
Min premium 5000 0 No of funds 7 Riders NO
Min premium payment term S P
TABLE 4.7: Features of different plans offered by ICICI PRU LIFE INSURANCE (Source: www.iciciprulife.com)
CHAPTER -5 DATA ANALYSIS AND

INTERPRETATION S
5.1.
ANALYSIS OF
SECONDARY DATA
5.1.1.COMPARATIVE ANALYSIS OF UNIT LINK PLAN of TATA AIG with ICICI PRU
COMPANY NAME PLAN NAME AGE SUM ASSURED PREMIUM TATA AIG LIFE SUPER STAR 18-55 (5 TIMES POLICY TERM) * ANNUALISED PREMIUM MIN 20000 FOR TERM BETWEEN 10-25 YR & 40000 FOR TERM 5 YRMAX NO LIMIT 3 YRS AFTER 5 YRS NO SURRENDER CHARGES ICICI PRU LIFE LIFE TIME PLUS 18-65 100000-10000000 20000-300000
LOCK IN PERIOD SURRENDER ALLOWED
3 YRS AFTER 3 YRS 92% AFTER 4 YRS 94% AFTER 5 YRS 96%
DEATH AND MATURITY
FUND OPTION
On Death-Sum Assured is paid to nomiee on death of insure but policy benefit continue till policy term. On maturity- Value of accumulated fund is given to the beneficiary Top 50 Fund Top 200 Fund Super Select Fund Aggressive Flexi Fund For accidental death, Critical Illness
AFTER 6 YRS 98% AFTER 7 YRS 100% On Death- Sum Assured + Fund Value will be given to the nominee. On Maturity-Fund value is given to the policyholder Maximiser Balancer Protector preserver
TERM RIDER
For accident, Critical Illness, Permanent Disability
TABLE 5.1.1: COMPARISON OF TATA AIG SUPER STAR AND ICICI LIFE TIME PLUS
INTERPRETATION: 1.TATA AIG SUPERSTAR HAS BETTER SUM ASSURED AMOUNT AS COMPARED TO ICICI LIFE TIME PLUS. 2.TATA AIG YOUNGSTAR HAS NO SURRENDER CHARGES AFTER 5 YEARS. 3.TATA AIG HAS PROVIDED EXTRA RIDERS AT LOW COST.
5.1.2. COMPARATIVE ANALYSIS OF UNIT LINKED SAVING PLAN OF TATA AIG with ICICI PRU
COMPANY NAME PLAN NAME AGE SUM ASSURED PREMIUM LOCK IN PERIOD SURRENDER ALLOWED DEATH AND MATURITY
TATA AIG LIFE MAHALIFE GOLD 18-60 YR Min 25000 NO LIMIT
ICICI PRUDENTIAL LIFE LIFE TIME GOLD PLUS 18-55 (5 Times 40 Times) * anuualised premium MIN 48000 - MAX NO LIMIT MIN20000 - MAX NO LIMIT 3 YRS 3 YRS AFTER 5 YRS NO AFTER 5 YRS NO SURRENDER CHARGES SURRENDER CHARGES Sum Assured is On Death- Sum Assured guarantee in case of has been paid to both death and beneficiary. maturity. On Maturity-Fund value is given to the policyholder 15 years Guaranteed coupon payment every year-5% of sum assured 10th policy anniversary till maturity. 10 years No benefits
Premium Payment Term GUARANTEE BENEFITS
TABLE 5.1.2: COMPARISON OF TATA AIG MAHALIFE GOLD AND ICICI PRU LIFE TIME GOLD PLUS.
INTERPRETATION : 1.TATA AIG MAHA LIFE GOLD HAS LOWER OVERALL CHARGES AND ALSO GOOD RATE OF RETURN. 2.TATA AIG MAHA LIFE GOLD PROVIDED GUARANTEED RETURN AS COMPARED TO ICICI LIFE TIME GOLD PLUS.
3.TATA AIG HAS LOWER POLICY ADMINISTRATION CHARGES. 4.TATA AIG MAHA LIFE GOLD HAS PROVIDED COVER TILL AGE 100 YEARS.
5.2. PRIMARY DATA ANALYSIS

I have done a detailed survey in AMRITSAR to understand and study the consumers responses. The primary data was collected through questionnaires. This questionnaire was mainly formulated to target the common man to see his perception and awareness of various investment options available. The sample size of the survey was 100.Out of these 95 were male and 13 were female. The sample of respondents was carefully selected covering people in all age groups and with different backgrounds and occupations. The analysis of these questionnaires gives me an insight about the mindset of people regarding various investments. I have also used factor analysis in SPSS to extract the prominent factors influencing the investments decisions of the customers .Customer preferences as to where they would like to invest have been studied . Also I come to know about the preferences given by customers towards various top life insurance companies and their reasons for it. Here I saw that most of the customers invest regularly from quite some time but since the last few months their investments have come down due to recession and market slowdown. Following is the analysis of the primary data collected through questionnaires. (Please refer to annexure I)
5.2.1. DEMOGRAPHIC PROFILE OF THE RESPONDENTS
GENDER: Table 5.2.1 (a) :No. of male & female respondents. GENER MALE RESPONDENTS 87 PERCENTAGE 87% 13% 100%
Page 50
FEMALE 13 GLOBAL INSTITUE OF MANAGEMENT,AMRITSAR TOTAL 100
Fig. 5.2.1 (a) %age of male & female respondents.
INTERPRETATION: From the above graph, It has been concluded that 87% of respondents were male and 13% were female.
AGE: Table 5.2.1 (b) Age of the respondents. AGE 20 30 30 40 40 50 RESPONDENTS 5 25 30 PERCENTAGE 5% 25% 30%
Above 50 Total
40 100
40% 100%
Fig .5.2.1(B) Age of the respondents
INTERPRETATION From the above graph, It has been concluded that 40% of respondents lie above age of 50. 5% of respondents lie between the age of 20-30. QUALIFICATION
Table 5.2.1 (c) Qualification of the respondents. Class Under Graduate Post Graduate Graduate Total Respondents 30 28 42 100 Percentage 30% 28% 42% 100%
Fig.5.2.1(c) %age of the qualification of respondents
INTERPRETATION. From above graph,it has concluded that 42% respondents are graduates and 28% are post graduates.
OCCUPATION: Table 5.2.1 (d) Occupation of the respondents. OCCUPATION Business Service Professional Total RESPONDENTS 51% 29% 20% 100 PERCENTAGE 51 29 20 100
Fig.5.2.1 (d) Occupation of the respondents
INTERPRETATION: From the above graph it has been concluded that 51% of respondents belong to business class whereas 20% of respondents are professional.
Income:
Table 5.2.1 (e) Income of respondents Income: Below 1,00,000 Between 1,00,000 to 3,00,000 Above 3,00,000 Total Respondents 10 38 52 100 Percentage 10% 38% 52% 100%
Fig. 5.2.1 (e) %age of income of respondents.
INTERPRETATION: From the above graph it has been concluded that 52% of respondents have income between 1 lakh- 3 lakhs, whereas 10% have below 1lakh 5.3 CONTENT INFORMATION 5.3.1 RESPONDENTS HAVING AWARENESS OF ULIPS OF INSURANCE
COMPANIES Table 5.3.1 Respondents having awareness of ULIPS of insurance companies PARTICULARS No. of %AGE OF
respondents RESPONDENT YES NO 100 0 100% 0%
Fig.5.3.1 (a) %age of respondents having awareness of ULIPS of insurance companies
INTERPRETATION: From the above graph it has been concluded that 100% of respondents are aware with ulip of insurance companies.. 5.3.2 RESPONDENTS HAVING ULIPS OF TATA AIG/ICICI PRUDENTIAL Table 5.3.2 respondents having ULIPS TATA AIG/ICICI PRUDENTIAL PARTICULARS TATA AIG ICICI PRUD. NO. OF RESPONENTS YES NO 50 0 50 0 100 0 %AGE OF RESPONDENTS 100% 0%
Fig. 5.3.2: %AGE OF RESPONDENTS HAVING OF ULIP PLANS OF TATA AIG AND ICICI PRUDENTIAL
INTERPRETATION: From the above graph it has been concluded that 50% of respondents are having ULIPs of TATA AIIG and also 50% of respondents having the ULIPs from ICICI PRUD. 5.3.3 SOURCES FROM WHERE RESPONDENTS GET AWARE ABOUT ULIPS Table 5.3.3 sources from where respondents get aware about ULIPS PARTICULARS TATA AIG %AGE OF ICICI %AGE OF
RESPONDENTS PRUDENTIAL RESPONDENTS PRINT MEDIA ELECTRONIC MEDIA AGENTS TOTAL 18 50 36% 100% 14 50 28% 100% 12 20 24% 40% 16 19 32% 38%
Fig.5.3.3 SOURCES FROM WHERE RESPONDENTS GET AWARE ABOUT
ULIPS.
INTERPRETATION: From the above graph it has been concluded that in TATA AIG 24% of respondents came to know through print media, 40% of respondents know through electronic media ,36% of respondents came to know through agents Where as in ICICI PRUD.ENTIAL 32% of respondents came to know through print media ,38% of respondents came to know through electronic media ,28% of respondents came to know through agents.
5.3.4
TYPE OF PLANS YOU HAVE
Table 5.3.4 Type of plans you have PARTICULARS TATA AIG INVESTMENT PLAN PROTECTION PLAN PENSION PLAN CHILDREN PLAN TOTAL 50 100% 50 100% 8 16% 6 12% 10 20% 20 40% 7 14% 6 12% 25 %AGE OF ICICI %AGE OF
RESPONDENTS PRUDENTIAL RESPONDENTS 50% 18 36%
5.3.4 Fig. TYPE OF PLANS YOU HAVE
INTERPRETATION: From the above graph it is concluded that 50% of respondents prefer to have investment plans in TATA AIG and 36% of respondents prefer to have investments plans of ICICI PRUDENTIAL.
5.3.5 TIME PERIOD OF INVESTMENT IN THESE PLANS Table 5.3.5 Time period of investment in these plans PARTICULARS TATA AIG Less than 6 months 1 to 2 years 2 to 3 years More than 3 years TOTAL 50 100 50 100 10 25 7 20% 50% 14% 24 15 5 48% 30% 10% 8 %AGE OF ICICI %AGE OF RESPONDENTS 12%
RESPONDENTS PRUDENTIAL 16% 6
Fig. 5.3.5 Time period of investment in these plans
INTERPRETATION: From the above graph it is concluded that 50% of respondents in TATA AIG prefer to make investment for 2-3 years or where as in ICICI PRUDENTIAL 48% of respondents prefer to make investment for 1-2 years. 5.3.6 SATISFIED WITH THE PREMIUNS OF TATA AIG AND ICICI PRUDENTIAL. Table 5.3.6. Satisfied with the premiums of TATA AIG AND ICICI PRUDENTIAL PARTICULARS TATA AIG HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL 50 100 50 100 20 6 5 4 40% 12% 10% 8% 3 7 25 10 6% 14% 50% 20% 15 %AGE OF RESPONDENTS 30% ICICI PRUDENTIAL 5 %AGE OF RESPONDENTS 10%
Figure no.5.3.6 Satisfied with the premium of TATA AIG AND ICICI PRUDENTIAL
INTERPRETATION From the above graph it has been concluded that 30% of highly satisfied with premium of ulips offered by TATA AIG whereas 10% of respondents are highly satisfied with premium of ICICIPRUDENTIAL.
5.3.7. SATISFIED WITH THE RETURN OF TATA AIG AND ICICI PRUDENTIAL.
Table 5.2.7. Satisfied with the return of Tata Aig and Icici Prudential PARTICULARS TATA AIG HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL 50 100 50 100 21 4 0 0 42% 8% 0% 0% 22 5 4 0 44% 10% 8% 0 25 %AGE OF RESPONDENTS 50% ICICI PRUDENTIAL 19 %AGE OF RESPONDENTS 38%
Fig. 5.3.7. Satisfied with the return of Tata Aig and Icici Prudential
INTERPRETATION: From the above graph it has been concluded that 50 % of respondents are hoighly satisfied by the return of ULIP of TATA AIG whereas only 38% of respondents are highly satisfied by return given by Icici Prudential.
5.3.8. SATISFACTION LEVEL OF RESPONDENTS TOWARDS SERVICES PROVIDED BY YOUR COMPANY Table 5.2.8. Satisfaction level of respondents towards services provided by your company PARTICULARS TATA AIG HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED TOTAL 50 100 50 100 20 10 5 0 40% 20% 10% 0% 15 12 11 0 30% 24% 22% 0 15 %AGE OF RESPONDENTS 30% ICICI PRUDENTIAL 12 %AGE OF RESPONDENTS 24%
Fig. 5.3.8. Satisfied with the service provided by your company
INTERPRETATION:
From the above graph it has been concluded that in 27% of respondents in bajaj allianz are highly satisfied with their insurance company while in HDFC 29% of respondents are satisfied with the products and services.
5.3.9(A) RESPONSE REGARDING IMPROVEMENT IN SERVICES OFFERED BY TATA AIG AND ICICI PRUDENTIAL Table 5.3.9(a) response regarding improvement in services offered by TATA AIG AND ICICI PRUDENTIAL
PARTICULARS TATA AIG %AGE OF RESPONDENTS YES NO TOTAL 4 46 50 8% 92% 100
ICICI PRUDENTIAL 7 43 50
%AGE OF RESPONDENTS 14% 86% 100
Fig. 5.3.9.(a) response regarding improvement in services offered by TATA AIG AND ICICI PRUDENTIAL
INTERPRETATION
The above chart shows that 86% of customers says that there is no need of improvement in services of ICICI PRUDENTIAL whereas 14% of customer says there is a need of improvement in ICICI PRUDENTIAL services whereas the 92% of customers of HDFC says there is no need of improvement in its services wheras only 8 % says that TATA AIG should improve its services.
(b)RESPONDANTS WANT FOLLOWING IMPROVEMENTS IN SERVICES OF TATA AIG/ ICICI PRUD
Fig.(b) Respondents want following improvements in services of TATA AIG/ICICI
PRUDDENTIAL
PARTICULARS
TATA AIG
%AGE OF RESPONDENTS 37.5%
ICICI
%AGE OF
PRUDENTIAL RESPONDENTS 7 50%
Improvement in rate of return Improvement in range of ULIPS Improvement in Quality of service Total
50%
29%
12.5%
21%
100%
14
100%
INTERPRETATION:
From the above graph it has been concluded that 50 % of respondents wants improvement in services of TATA AIG by introducing in range of ULIP plans while in ICICI PRUDENTIAL 50 % of respondents want improvement in services by getting maximum rate of return. 5.2.10. RESPONDENTS WHO LIKE TO SWITCH OVER TO ANOTHER INSURANCE COMPANY Table 5.3.10. Respondents who like to switch over to another insurance company PARTICULARS TATA AIG %AGE OF RESPONDENTS YES NO TOTAL 3 47 50 6% 94% 100% ICICI PRUDENTIAL 7 43 50 %AGE OF RESPONDENTS 14% 86% 100%
Fig. 5.3.10. Respondents who like to switch over to another insurance company
INTERPRETATION: The above chart shows that 6% customers of TATA AIG would like to switch over to the another insurance company and 94% customers says that they
do not change their insurance company whereas 14% customers of says yes and 86% says no. (b) PREFERENCE OF RESPONDENTS TOWARDS ANOTHER INSURANCE COMPANIES: Table (b) preference of respondents of TATA AIG and ICICI PRUDENTIAL towards another insurance companies INSURANCE COMPANIES NO.OF RESPONDEN TS OF TATA AIG LIC HDFC SL MAX NEWYORK BAJAJ ALLIANZ TATA AIG ICICI PRUD. TOTAL _ 0 3 100% 2 _ 7 29% 100% 0 0 2 1 0 67% 33% %AGE OF RESPONDEN TS NO.OF RESPONDEN TS OF ICICI PRUD. 4 1 0 57% 14% %AGE OF RESPONDEN TS
Fig. (b) Preference of respondents towards another insurance companies
INTERPRETATION:
From the above graph it has been concluded that 67% of respondents in TATA AIG prefer to switch LIC and 33% in HDFC because of less range of ULIP plans ,whereas in ICICI PRUD. 57% of respondents switch over to LIC ,14% towards HDFC and 29% towards TATA AIG because of risk insecurity.
CHAPTER -6 FINDINGS, SUGGESTIONS AND CONCLUSION
6.1
FINDINGS
It has been found that that maximum no. of respondents are aware with ULIP of insurance companies while very few no. of respondents are not aware from these plans.
It has been concluded that less respondents are having ULIPs of insurance companies. It has been concluded that few no. of respondents came to know through print media, many of respondents know through electronic media, some of respondents came to know through agents Where as in TATA AIG few no. of respondents came to know through print media ,highest of respondents came to know through electronic media ,some of respondents came to know through agents.
It is concluded that less no. of respondents prefer to have invetsment plans in ICICI PRUD. and more no. of respondents prefer to have investments plans of TATA AIG.
It is concluded that large no.of respondents in ICICI PRUD. prefer to make investment for 1-2 years or where as in TATA AIG large no. of respondents prefer to make investment for 2-3 years.
It has been found that in TATA AIG many of respondents get convinced to buy ULIPS from media while in ICICI PRUD. highest of respondents get convinced from agents.
It has been concluded that large no. respondents of TATA AIG respondents in are satisfied with their insurance company while in ICICI PRUD. LESS no. of respondents are satisfied with the products and services .
It has been found that around 92% of customers says that there is no need of improvement in TATA AIG services whereas only 86% customers of ICICI says there is no need of improvement in its services.
It has been concluded that half of respondents wants improvement in services of TATA AIG by introducing in range of ULIP plans while on ICICI PRUD. many of respondents want improvement in services by getting maximum rate of return.
It has been concluded that maximum of respondents in ICICI PRUD. prefer to switch to another insurance company because of not providing risk cover to them. While in TATA AIG respondents are satisfied with their insurance company and want to switch because of less range of ULIPS.
6.2

Suggestions
Both private sector companies are to be improved in giving services to their investors. The premium amount should be reduced in all private sector companies so that poor people can buy a policy which gives more respect to them in their minds In private sector insurance companies they are selling more number of unit linked plans. They are not concentrating on traditional plans. So people are diverting to LIC. Today its the only LIC which is having more number of customers its all because of their long term policies.
Tax benefits are to be increased so that investor will be tension free. People should be made more aware about the unit linked plans. So that, they can invest more in the market. Premium allocation charge (initial charge) should be reduced to provide customer with better return. Policy administration charge should be reduced to gain more advantage in the market. Surrender charges should be reduced. There should be focus on advertisements through T.V. or other Electronic Media. The company needs to launch some major initiatives for its financial consultants to make them sell more unit linked plans. In order to make their pension plan more competitive the option of offering risk cover in unit linked pension plan should be there.
6.3 CONCLUSION Unit linked plans are increasingly become popular, Due to scientific investment approach and a number of investor-oriented benefits, return on investment is very high in unit linked plans. The Unit linked endowment plan provides high return on investment, in this plan you may choose between 3 levels of cover Low, Medium or High. Unit linked Endowment Plan gives the option of additional protection against the six common critical illnesses, as well as additional protection if death is as the result of an accident, your premiums are invested in units of the investment fund of your choice based on the prevailing unit price. The unit linked super star plan of TATA AIG is very investor friendly. And if an investor invests his money in the above discussed plan he can get very handsome return plus the life risk cover. There are other advantages like premium redirection, risk diversified, top up etc. which make this plan very splendid. The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits. In nutshell we can say that, TATA AIG LIFE INSURANCE is better tha Icici Prudential. People are more aware of the ULIPS of TATA AIG than Icici Prudential as it provides better services and more investment opportunities.
REFERENCES
WEBSITES
www.idbifortis.com www.hdfcstandardlife.com www.licindia.com www.bajajallianz.com www.iciciprulife.com www.tata-aig-life.com www.irdaindia.org http://www.scribd.com/doc/11005006/Insurance-Industry-Growth-Chart-Under-Drive-ofDemand-and-Value-Recommended20090121 http://www.scribd.com/doc/4996143/OVERVIEW-OF-INSURANCE-SECTOR-INDIA http://www.scribd.com/doc/7044410/ULIPs http://www.indiaprwire.com/pdf/pressrelease/200805079347.pdf http://www.scribd.com/doc/136703/Indian-Insurance-Changing-Trends-and-a-Fresh-Perspective http://www.scribd.com/doc/7216240/Understand-ULIP-Insurance The knowledge times http://www.financialexpress.com/search/news/ulips+flexible+to+the+core/ http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan002873.pdf http://wealth.moneycontrol.com/yourstartupkit/ulip/why-invest-in-ulips-/9051/0 http://economictimes.indiatimes.com/Personal-Finance/Insurance/Life-insurance-industrytargeting-20-pc-growth-in-FY-09/rssarticleshow/4095144.cms http://www.marketsmonitor.com/Report/IM588_related.htm http://www.marketsmonitor.com/Report/IM126.htm
http://www.marketsmonitor.com/Report/IM126.htm
ANNEXURE
QUESTIONNAIRE Dear respondent, I am BHUPINDER PAL SINGH, pursuing MBA from GLOBAL INSTITUTE OF MANAGEMENT, AMRITSAR conducting a survey on COMPARATIVE STUDIES OF UNIT LINKED INSURANCE PLANS OF TATA AIG AND ICICI PRUDENTIAL. Kindly cooperate me to fill the questionnaire from your valuable time. All the information will be kept confidential. DEMOGRAPHIC PROFILE 1. NAME 2. AGE a. 20 30 b. 30 40 c. 40- 50 d. Above 50 3. GENDER a. MALE b. FEMALE 4. QUALIFICATION a. UNDER GRADUATE b. GRADUATE c. POST GRADUTE
5. OCCUPATION a. BUSINESS b. PROFESSIONAL c. SERVICE 6. INCOME a. Below 1, 00,000 b. Between 1, 00,000 to 3, 00,000 c. Above 3, 00,000
CONTENT INFORMATION Q.1. Are you aware of ULIPs of insurance companies a. Yes b. No
Q.2. Respondents having ULIPs of TATA AIG/ICICI PRUDENTIAL a. TATA AIG b. ICICI PRUDENTIAL Q.3. How do you come to know about ULIPS of BAJAJ ALLIANZ and HDFC SL? OPTIONS Print media Electronic media Agents TATA AIG ICICI PRUD.
Q.4. Which types of plans do you have? OPTIONS Investment plan Protection plan Pension plan Children plan TATA AIG ICICI PRUD.
Q.5. For how long are you investing in these plans? OPTIONS Less than 6 months 1 to 2 years 2 to 3 years More than 3 years TATA AIG ICICI PRUD.
Q.6. Are u satisfied with the premiums of TATA AIG AND ICICI PRUDENTIAL? OPTIONS TATA AIG ICICI PRUD.
HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED
Q.7. Are u satisfied with the return of TATA AIG AND ICICI PRUDENTIAL? TATA AIG OPTIONS HIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED ICICI PRUD.
Q.8. Are you satisfied with the services provided by your company? OPTIONS HIGHLY SATISFIED SATISFIED TATA AIG ICICI PRUD.
NEUTRAL DISSATISFIED HIGHLY DISSATISFIED
Q.9.(a) Do you want any improvement in the services offered by your insurance company? OPTIONS Yes No TATA AIG ICICI PRUD.
(b .)If yes, tick the following options OPTIONS Maximum rate of return Improvement in range of ULIPs Improvement in quality of services BAJAJ ALLIANZ HDFC SL
Q.10. Would you like to switch over to another insurance company? OPTIONS Yes No BAJAJ ALLIANZ HDFC SL
(b)If yes, tick the following options

OPTIONS LIC HDFC SL MAX NEW YORK BAJAJ ALLIANZ TATA AIG ICICI PRUDENTIAL
TATA AIG
ICICI PRUD.

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CHAPTER -1 INTRODUCTI0N

GLOBAL INSTITUE OF MANAGEMENT,AMRITSAR

Insurance business is divided into four classes:

Life Insurance Fire Marine Miscellaneous Insurance.

ROLES OF THE LIFE INSURANCE:

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Fig 1: Insurance cycle

Policy Renewal/Change Options/Application

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Sales Closing/Cancellation/Termination Dates

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Notice of Damage or Loss

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Contract Change Date

1.1.5 HISTORY OF THE INSURANCE SECTOR:

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Some of the important milestones in the general insurance business are:

YEAR 1907 1957

DEVLOPMENT AUTHORITY ACT, 1999

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1.1.8. NAME OF MAJOR INSURANCE COMPANIES IN AMRITSAR CITY

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Private Private Private Private Private Private Private Private Private

MARKET SHARE OF DIFFERENT PRIVATE

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CHAPTER -2 INTRODUCTI ON TO COMPA NY

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TATA GROUP IN INSURANCE

AMERICAN INTERNATIONAL GROUP (AIG)

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THE JOINT VENTURE OF TATA GROUP AND

2.5. ABOUT TATA-AIG:

MISSION, VISION AND VALUES

Integrity and Innovation

2.8. RECENT ACHIEVEMENTS AND MILESTONES

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PERFORMANCE OF THE COMPANY IN THE

LAST FEW YEARS

2.10. FUTURE PROSPECTS/PLANS OF THE COMPANY

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2.11. PRODUCT RANGE OF COMPANY

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CHAPTER-3 REVIEW OF LITERAT URE

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CHAPTER -4 RESEARCH METHOLOGY

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SCOPE OF THE STUDY

OBJECTIVES OF THE PROJECT

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Methods adopted for surveys

LIMITATIONS OF THE STUDY

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UNIT LINKED INSURANCEPLAN S

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Figure 4.1: Premium break -up under ULIPs

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TYPES OF FUNDS UNDER ULIPs

Equity Funds Income, Fixed Interest and Bond Funds

Combining equity investment with fixed interest instruments

Table 4.2 : Types of funds under ULIP